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July 3, 2018 at 9:35 am #468Tamal DuttaGuest
The first half of economic calendar is officially over. Wall street already have completed the first half of the year.
The first half of this year finished irregular in spite of a solid start in early 2018. U.S. stocks hit an all-time high in late January as the market rose so quickly to start the year. In major U.S. indices, the S&P 500 is up over 2% and the Nasdaq has gained over 9%. Only one major index The Dow has lost his ground in the first six months of this year and finished in the red zone.As the stock market entered the second half of the year, the fundamental and economic growth is pretty good as workers and consumers remain confident in the economic expansion. Changing trade dynamics could further complicate the economic outlook. Businesses are looking confident, interest rates are also still relatively low instead of the rate hike, and increasing the demand for labour will fuel companies to increase investment and boost productivity. The financial sector has come out from previous tumble as the biggest U.S. banks announced plans to buy back tens of billions of dollars in stock and hike their quarterly dividends after passing an annual stress test by the Federal Reserve.
As well as the Energy sector took part in the rally by end of this half after the most awaited OPEC solution came out from Vienna meeting.
Economic growth has accelerated this year, as well as the volatility. But sources are predicting well for the second half of the year.
Week Ahead:
The week ahead will bring investors the beginning of July, the third quarter, and the second half of the year. The monthly jobs report set for release on Friday of this week, while key readings on the manufacturing sector and the Federal Reserve’s latest meeting also set for release in this week. The June jobs report is expected to show another strong month of job creation for the U.S. economy. Few of S&P 500 companies set to report their earnings.
The economic backdrop is still remaining constructive for investors and the stock market set up for investors still remains mixed. The recent protectionist measure was taken by President Trump may also drive the market. Now the question is will it go in favour of US economy or not! As some Wall Street experts and economist are concerned if the recent conflict of US with the other major economies continues the economic growth may slow down.
So Investors may not have the bullish sentiment in mind nor either too bearish, but the truth is an environment of uncertainty is clouded over the US Equity Market keep investors keep on edge.
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